In summary
- In September 2024, Solana-based protocol Pump.fun became the fastest-growing Cryptocurrency app in history.
- Pump.fun is a protocol that allows anyone to create a token in minutes for free, releasing over 1 million tokens to date.
- The platform has been responsible for some of the biggest memes and viral moments in cryptocurrency history.
In September 2024, Solana-based protocol Pump.fun became the fastest-growing cryptocurrency app in history by some metrics, reaching $100 million in revenue in record time.
The memecoin launchpad has spawned some of the biggest memes, viral fads, and dangerous moments in cryptocurrency history, including a cute dog named Billy, a series of celebrity tokens, and a developer who set himself on fire.
Some have criticized the platform for saturating the meme coin market, while others have hailed it as the main driver behind the memecoin craze.
So, if you want to know everything about Pump.fun, be sure to read this article to find out how the memecoin launch platform works.
What is Pump.fun?
Created by pseudonymous founder Alon in January 2024, Pump.fun is a protocol that allows anyone to create a token in minutes for free. To date, it has launched over 1 million tokens, and has been responsible for up to 67.5% of daily token launches on Solana.
One of the most controversial features of Pump.fun is its built-in live streaming feature. This came after a wave of memecoin developers streamed on Kick and Telegram while performing funny, weird, and dangerous pranks to boost their tokens. This has resulted in a new wave of polarizing streams.
Since its launch, it has managed to fend off rival protocols that also allow users to cheaply airdrop tokens. Players such as DEX Screener’s Moonshot and a Twitter-based Makenowmeme unsuccessfully attempted to topple Pump.fun from its throne, while controversial Tron creator Justin Sun had more success with SunPump, which captured some of the protocol’s market share.
How to create a token on Pump.fun?
All users have to do to create a meme coin on Pump.fun is fill out a short form.
The site requires you to enter a token name, ticker, description, and attach a photo and finally click “create coin.” It really is that simple. Token creators can also choose to add a Twitter, Telegram, and website link, but this is completely optional.
Image: Pump.fun
Previously, the site required creators to pay 0.02 SOL ($2.50 at the time of this writing), but in August 2024, the protocol removed this barrier making it completely free to stake. In fact, you are now rewarded with 0.5 SOL (~$80) if you create a token that completes its “bonding curve.”
What is a bonding curve? Once a token is created, its bonding curve will slowly fill as the market cap increases. Once the coin reaches a market cap of $69,000, it will “graduate” to trading on the Raydium decentralized exchange with $12,000 in liquidity.
What meme coins have been created on Pump.fun?
Some of the biggest meme cryptocurrencies of 2024 originated on Pump.fun, including Billy (BILLY) which reached a peak market cap of $218 million, Michi (MICHI) reaching $321 million, and Shark Cat (SC) which hit $350 million.
Recently, it has given rise to viral tokens such as FWOG (FWOG), Smoking Chicken Fish (SCF), and Reddit Dog (r/snoofi).
It has also been home to several celebrity-launched tokens, including Iggy Azalea’s MOTHER, Andrew Tate’s DADDY, and Jason Derulo’s JASON. It has also spawned several tokens following celebrity and corporate hacks, including Kylian Mbappe, Metallica, and McDonalds.
Of course, there’s the long list of controversial livestreaming tokens. While some are well-intentioned attempts to revolutionize the creator economy, the first token to catch the industry’s attention featured a child and his alleged mother, who suggestively bounced her breasts on camera. This sparked a wave of new streaming tokens to follow, including an “Addicted Developer” who took a concoction of drugs before passing out and faking his own death.
One of the most notorious developers, named Mikol, doused himself with isopropyl alcohol and let himself shoot off fireworks to boost his token. After being hit multiple times, he caught fire and was rushed to the hospital with third-degree burns on 30% of his body.
The future of Pump.fun
At the time of writing, Pump.fun appears to have overcome the challenge from rival meme coin factory SunPump, which at one point surpassed Pump.fun in terms of daily meme coin traders. Pump.fun has since regained its dominance.
But this minor setback showed that meme coin traders have an appetite for other memecoin launchpads and won’t stay loyal without a reason to do so. Possibly for that reason, Pump.fun’s protocol has continued to evolve.
As Makenowmeme emerged with lower fees, Pump.fun followed with an update to remove its own fees. Amidst the rise of SunPump, Pump.fun focused on its streaming feature by allowing multiple people to stream at the same time, similar to a Twitter Spaces, but for meme cryptocurrency Degens.
The protocol has also attracted negative attention. In May 2024, Pump.fun suffered an attack from a disgruntled employee. Jarett Dunn drained an estimated $2 million worth of Solana and sent the funds to random addresses before going on a series of Twitter posts claiming he wanted to “kill” the platform because it had “inadvertently hurt people.” He was arrested in London a few days later. In August 2024, Dunn pleaded guilty to fraud by abuse of position, as well as transfer of criminal property.
As for what’s next, it’s hard to predict. Pump.fun updates come out of the blue and there’s no white paper or roadmap. The platform will likely continue to react to the competition, adding new features and tweaking current ones in an attempt to maintain its competitive edge.
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